Here's what to expect for the T-bill auction on 23 October

What happened?

The next 6-month Singapore T-bill auction (BS25121V) will be on 23 October 2025.

After the cut-off yield for the most recent 6-month Singapore T-bill stabilised at 1.44%, some of you may be wondering if we will see an increase in the T-bill yield in the upcoming auction.

After all, many investors continue to use Singapore T-bills as a way to generate passive income.

In this post, I’ll walk you through some of the latest indicators to help us gauge what the upcoming cut-off yield might be, and if its still be worthwhile applying for the T-bills. 

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Here's what to expect for the Singapore T-bill auction on 23 October 

#1 – US bond yields have fallen 

The 10-year US government bond yield has dipped below 4% in the past week.

This is likely due to heightened expectations of additional interest rate cuts by the US Federal Reserve in the coming months.

As of 17 October 2025, the 10-year US government yield was at 3.96%. The previous time the 10-year US government yield was at this level was 4 October 2024. 

Likewise, the 1-year US government bond yield has fallen to 3.55% from 3.6% two weeks ago.

#2 – Singapore bond yields also declined

The 10-year Singapore government bond yield was at 1.75% as of 17 October 2025, declining from 1.91% on 3 October 2025.

The closing yield on the 6-month T-bill was 1.40% on 17 October 2025,  below the cut-off yield of 1.44% in the previous T-bill auction on 9 October.

The yield on the 3-month MAS bill can also give an indication of the yields for shorter-maturity Singapore government bonds.

The cut-off yield was at 1.43% in the auction on 14 October 2025, also below the yield of 1.46% in the auction on 30 September 2025.

#3 – Issuance size higher than the previous auction

The issuance size of the upcoming 6-month Singapore T-bill is $7.9 billion, above the previous auction size of $7.8 billion.

We saw an increase in the amount of T-bill applications to S$14.8 billion in the auction on 9 October 2025 from S$13.5 billion in the auction on 25 September 2025.

If demand remains unchanged compared to the previous auction, the larger issuance of T-bills may help to provide some support to the yield in the upcoming auction.

What would Beansprout do?

The closing yield on the 6-month Singapore T-bill was at 1.40% on 14 October 2025, as US and Singapore government bond yields continue to dip in the past week.

The closing yield on the 6-month Singapore T-bill is on par with the best 6-month fixed deposit rate of 1.40% p.a.

It would also be quite close to the 1-year return of 1.39% on the latest Singapore Savings Bonds (SSBs).

However, we were still able to find savings accounts in Singapore that offer an interest rate of above 1.40% p.a. For example, the DBS Multiplier promo allows new Multiplier customers to earn up to 2.5% p.a. on the first S$100,000. 

To compare between fixed deposits, T-bills, savings account and SSBs, check out our guide to the best places to park your cash in October 2025.

To find out other ways to make your savings work hard, check out our guide to best ways to earn a passive income in Singapore.

[Beansprout Exclusive Longbridge Promotion] Get bonus S$50 FairPrice voucher, S$18 cash voucher, plus 2x6% p.a. interest boost on S$2,000 with Longbridge Cash Plus for 90 days (worth up to S$60) when you sign up for a Longbridge account via Beansprout and fund S$2,000. T&Cs apply. Learn more about the Longbridge promotion here. 

Stay updated on the T-bill

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The 6-month Singapore auction will be held on 23 October (Thursday). We would need to put in our cash applications for the T-bills by 9 pm on 22 October (Wednesday).

Applications for the T-bills using CPF-OA will close 1-2 business days before the auction date, and the dates differ across the three local banks.

• Applications for T-bills online using CPF OA via DBS close at 9pm on 22 October (Wed). Read our step-by-step guide to applying via DBS.
• Application for T-bills online using CPF OA via OCBC close at 9pm 22 October (Wed). Read our step-by-step guide to applying via OCBC
• Applications for T-bills online using CPF OA via UOB close at 9pm on 21 October (Tues). Read our step-by-step guide to applying via UOB.  

If you are new to investing in the T-bill, check out our comprehensive guide to Singapore T-bills to learn more.

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